Wrap Text
Full Year Results For The Year Ended 30 September 2021
Schroder European Real Estate Investment
Trust plc
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
("SEREIT"/ the "Company" / "Group")
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
Schroder European Real Estate Investment Trust plc, the company investing in European growth
cities and regions, today announces its full year results for the year ended 30 September 2021.
SALIENT FEATURES
Quarterly dividends at pre-Covid level and award of special dividend
• Continuation of pre-Covid dividend of 1.85 euro cents per share (cps)
• Additional special dividend of 4.75 cps announced, with intention to declare a further special
dividend targeting approximately 4.75 cps alongside the next interim results, reflecting the
profitable sale and refurbishment of Boulogne-Billancourt (“Paris B-B”)
Financial highlights: Well positioned with improving earnings and low loan to value with
over €40 million of investable firepower
• Net Asset Value ('NAV') of €199.5 million or 149.2 cps, (30 September 2020: €201.8 million or
150.9 cps);
• NAV total return of 3.2% based on an IFRS profit of €6.2 million (30 September 2020: 16.2% /
€28.4 million) driven primarily by valuation increases in the industrial and DIY assets, together
with the German office portfolio, which was offset by the write down of the Seville exposure
to € nil;
• Underlying EPRA earnings of €6.6 million (30 September 2020: €8.6 million), which will
increase with the redeployment of Paris B-B sale proceeds and as rent collection improves;
• Loan to Value of 16% net of cash/28% gross of cash (30 September 2020: 24% net of cash/28%
gross of cash) at a weighted average total interest rate of 1.4% and a weighted average loan
duration of 2.9 years, with the earliest loan maturity in 2023;
• Total dividends declared of 11.87 cps with 7.12 cps from ordinary dividends. Dividend cover
of 69% for the ordinary dividends (30 September 2020: 112%), with a portion of the net sale
proceeds from the disposal of Paris B-B to be allocated towards covering the shortfall in
income in the short term
• Over €40 million, excluding debt, of investment firepower available and strong pipeline of
acquisition opportunities, positioning the Company for future growth
Operational highlights: Asset management success and weighting to high growth sectors
driving portfolio resilience
• 1.7%, or €3.5 million, increase in the like for like portfolio value to €215.7 million. Excluding
the write down of the Company’s sole shopping centre exposure, the portfolio value
increased by €10.2 million, or 5.6%;
• Two acquisitions completed totalling approximately €10 million:
o a logistics investment in Nantes, France for €6.2 million, reflecting a net initial yield
of 5.5%; and
o an additional floor totalling 1,050 sqm in the Paris Saint-Cloud office investment
in Paris
• Concluded 11 new leases and re-gear events generating approximately €700,000 of annual
contracted rent at a weighted average unexpired lease term of four years. This includes
Hamburg’s remaining floors at rents significantly above expected rental value and increasing
occupancy from 80% to 100%;
• Robust rent collection of 93% during the period, including 95% for most recent quarter;
• Paris Boulogne-Billancourt refurbishment remains on track to be delivered in Q2 2022 and
within cost, with the remaining 50% consideration for the refurbishment to be received in
instalments over the refurbishment period;
• Retained GRESB 3 green star rating with asset specific sustainability initiatives identified to
improve rating.
Sir Julian Berney Bt., Chairman, commented:
“The Company continues to be a unique and compelling proposition for investors and is well
placed to benefit from the trends that have accelerated as a result of the pandemic. These include
changes in occupier demand, delivering operational excellence and ensuring that sustainability
priorities are instilled within the Company’s investment process.
“We continue to work with the Investment Manager in the deployment of capital into new
investments and earnings enhancing initiatives to further diversify the portfolio and move the
dividend cover back to 100%. We will continue to employ a highly disciplined and patient
approach.
The board does not believe that the current share price reflects the robust performance of the
business and in particular the attractive dividend yield, opportunity to benefit from special
dividends and the Winning Cities and Regions exposure.”
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited,
added:
"The ambition to continue diversifying the portfolio and drive the next phase of growth by
leveraging our local expertise to originate and acquire new opportunities remains undimmed.
Pleasingly, the portfolio has again demonstrated its attractive income and capital growth
characteristics during what has been another challenging period. With continued market
uncertainty, the Company’s exposure to higher growth cities and sectors, coupled with its
prudent gearing position and available investment firepower, means it is well positioned to
deliver shareholder value.”
A virtual presentation for analyst and investors will be held today at 9am GMT / 11am SAST. To
register please visit:
https://us02web.zoom.us/webinar/register/WN_8xsop-KDQ2eDZcJ8LLz8jA
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the information in the full announcement (“Full Announcement”) and does
not contain full or complete details. The Full Announcement can be found at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/SCDE/SEREITFY21.pdf
Copies of the Full Announcement is also available for viewing on the Company’s website at
www.schroders.co.uk/sereit or may be requested in person, at the Company’s registered office
or the office of the sponsor, at no charge, during office hours.
Any investment decisions by investors and/or shareholders should be based on consideration of
the Full Announcement, as a whole.
These annual results have been audited by the Company’s auditors, PricewaterhouseCoopers LLP
who expressed an unmodified audit opinion thereon. The full auditor’s report includes details of
key audit matters. This auditor’s report is available, along with the annual financial statements,
on the Company’s website at www.schroders.co.uk/sereit.
The Company has a primary listing on the London Stock Exchange and a secondary listing on the
JSE Limited.
London
7 December 2021
Sponsor
PSG Capital
Date: 07-12-2021 09:00:00
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